U.S. Trade Deficit in 3Q Manufactures Up 6% YOY - Modern Distribution Management

Log In

U.S. Trade Deficit in 3Q Manufactures Up 6% YOY

MAPI report: Chinese trade surplus also increased, but at a slower pace.
Author
Date

The U.S. trade deficit in manufactures continued to rise in the third quarter 2012 compared with 2011, according to a new report from the Manufacturers Alliance for Productivity and Innovation (MAPI). At the same time, the Chinese surplus continued to increase, but at a slower pace than in the first half of 2012.

\"TheDownload a Free Chapter:
The Little Black Book of Strategic Planning for Distributors

Submit your email address below to receive a chapter of Brent Grover’s new book. When you submit your email you will be signed up to receive weekly distribution news updates.

\"\"

In The U.S. Trade Deficit in Manufactures and the Chinese Surplus Continued to Rise in the Third Quarter, Ernest H. Preeg, MAPI senior advisor for international trade and finance, highlights that the U.S. global trade deficit in manufactures rose by 6 percent, or by $8 billion, in the third quarter of 2012 compared with 2011, while the Chinese surplus increased by 4 percent, or by $7 billion.

“The striking distinction between the two growth paths is that while the U.S. deficit grew at a relatively steady pace of 6-7 percent, the Chinese surplus soared by 24 percent in the first half of the year before dropping to 4 percent in the third quarter,” Preeg said. “The reduced growth in the Chinese surplus reflects, in part, the very slow growth or recession in the EU and Japan, and its dampening effect on Chinese exports.”

Manufactured goods constitute the dominant sector of trade, accounting for about 95 percent of Chinese and about 75 percent of U.S. merchandise exports. The sector is also central to technological innovation, as two-thirds of U.S. civilian  research and development and  new patents derive from the manufacturing sector.

Preeg estimates that the $169 billion increase in the deficit since 2009, based on average value-added per worker, equates to a loss of 700,000 to 1.4 million manufacturing jobs, or almost 10 percent of employment in the sector. For 2012, the job loss is projected to be 125,000 to 250,000.

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.